gerry.harris Posted March 2, 2007 Share Posted March 2, 2007 Before somebody did this, I would suggest that they consider "self-insuring" for that $50,000. I'm betting that if you took the money that you would have paid for that whole-life policy and instead put it into an index or mutual fund, that it will be worth more than the $50,000 that the policy would be worth at the time you are going to need it (which will be sometime more than 20 years from now when your term life runs out.) Even better, you won't have to die to get the money in case you really need it for something else. That is a good idea in theory and it may be the best thing in some peoples opinion or situation. But, If you purchase $50,000 of whole life insurance, in twenty years, the death benefit will actually be much more than that. As your dividends and cash value grow (term life does not have this feature), your death benefit grows unless you elect to cash in on the dividends. Thus, a $50,000 policy could be worth $75,000 in 20 years if the dividends are left to purchase additional insurance rather than cashed in. Also, if you invest the premium amount elsewehere instead of the insurance policy, i do not think that you would have as much of a cash pot as the amount of insurance. If your insurance policy costs $50 a month, how long would it take you investing $50 a month into mutual funds to get $50,000. And lets say you choosed this route and you die unexpectinly in 3 years. How much money would you have? Not much. But the life policy is instantly worth $50,000. I am not saying this to try to sell anyone becuase i do not know any of you, i am just giving my opinion based on what i have seen in the business. Quote Link to comment Share on other sites More sharing options...
gerry.harris Posted March 2, 2007 Share Posted March 2, 2007 I like the way you think... My husband and I have no kids -so we have no life insurance. My first thought was why someone between 60-80 years old needs life insurance, but not being in the insurance biz, I may be missing something. in your case, if you have no kids, are betwenn 60-80, have the house paid for or close to it, and could live without the other spouses income if there still is one, then you probally do not need life insurance other than to cover the burial cost and if you have that set aside, then you probally could find better things to put your money into. Quote Link to comment Share on other sites More sharing options...
Big Country Posted March 2, 2007 Share Posted March 2, 2007 Finally... somebody who loves me for my mind rather than for my charmingly handsome good looks. Well, I now owe my work a new monitor as I just spat Diet Coke all over it. Quote Link to comment Share on other sites More sharing options...
wiegie Posted March 2, 2007 Share Posted March 2, 2007 Well, I now owe my work a new monitor as I just spat Diet Coke all over it. What, did you think that people only loved me for my dexterity with a cattle-prod? Quote Link to comment Share on other sites More sharing options...
Big Country Posted March 2, 2007 Share Posted March 2, 2007 What, did you think that people only loved me for my dexterity with a cattle-prod? I thought it was your man love for Pujols that impressed them. OR the way you look in a Pinkston jersey and Minnie Mouse ears. Quote Link to comment Share on other sites More sharing options...
Ziachild007 Posted March 2, 2007 Author Share Posted March 2, 2007 Thanks for all of the help Quote Link to comment Share on other sites More sharing options...
muck Posted March 2, 2007 Share Posted March 2, 2007 How bad is the premium increase to get into the million range? Probably less than you'd expect. To make the point, say you want to double your coverage ... your premium will not double ... say, 80% increase. Why? The fixed cost of underwriting and administering the policy doesn't change (the fixed portion); only the variable death benefit would change. Quote Link to comment Share on other sites More sharing options...
geeteebee Posted March 2, 2007 Share Posted March 2, 2007 I guess that was when I was a kid. Mind you, my total debt is only 250k. That puts me at 200k for the wife and 200k for the daughter. Probably still a little thin, and I do have twins on the way. How bad is the premium increase to get into the million range? USAA has a 20 level term for a 34 yo male non-smoker for $270/ yr. for $500k or $490/yr. for $1M. Quote Link to comment Share on other sites More sharing options...
muck Posted March 2, 2007 Share Posted March 2, 2007 USAA has a 20 level term for a 34 yo male non-smoker for $270/ yr. for $500k or $490/yr. for $1M. To make the point, say you want to double your coverage ... your premium will not double ... say, 80% increase. (490 - 270) / 270 = 81.5% Quote Link to comment Share on other sites More sharing options...
Chavez Posted March 2, 2007 Share Posted March 2, 2007 Before somebody did this, I would suggest that they consider "self-insuring" for that $50,000. I'm betting that if you took the money that you would have paid for that whole-life policy and instead put it into an index or mutual fund, that it will be worth more than the $50,000 that the policy would be worth at the time you are going to need it (which will be sometime more than 20 years from now when your term life runs out.) Even better, you won't have to die to get the money in case you really need it for something else. You sound like one o' them thar Prime-America fellers.... Quote Link to comment Share on other sites More sharing options...
Piles Posted March 2, 2007 Share Posted March 2, 2007 My first thought was why someone between 60-80 years old needs life insurance, but not being in the insurance biz, I may be missing something. I have to agree here. If you need life insurance in this age range then you better plan on working the rest of your life. And I think Whole Life Insurance is a horrible investment vehicle. Do a term policy and invest the difference on your own or have a well respected advisor help you. Preferably an advisor who does NOT get paid via commission. Conflict of interest with that.... Quote Link to comment Share on other sites More sharing options...
Ziachild007 Posted March 3, 2007 Author Share Posted March 3, 2007 USAA has a 20 level term for a 34 yo male non-smoker for $270/ yr. for $500k or $490/yr. for $1M. I havent really shopped around a whole lot yet, but the one I got from State Farm was $937 a year for $1M. Quote Link to comment Share on other sites More sharing options...
yo mama Posted March 3, 2007 Share Posted March 3, 2007 (edited) I havent really shopped around a whole lot yet, but the one I got from State Farm was $937 a year for $1M. Did you check that website I posted a link to earlier? Edited March 3, 2007 by yo mama Quote Link to comment Share on other sites More sharing options...
Ziachild007 Posted March 3, 2007 Author Share Posted March 3, 2007 Did you check that website I posted a link to earlier? Didn't see it earlier. Thanks! Quote Link to comment Share on other sites More sharing options...
Beaumont Posted March 3, 2007 Share Posted March 3, 2007 Always wondered why they call it life insurance instead of death insurance. "Its not for the person who dies. Its for the people who live." Quote Link to comment Share on other sites More sharing options...
Clubfoothead Posted March 3, 2007 Share Posted March 3, 2007 (edited) wiegie, spain others and I discussed this maybe 4 years ago while my wife was pregnant. spain convinced me term (30 year). wiegie, I believe, convinved me making it almost like wining the loto for my family was the way top go. I appreciate both their advice I've been with Mass Mutual since about 2 months after that thread. I'm insured for $1,000,000.00 with Mass Mutual, significantly more than I "need". I pay $143 a month as a healthy smoker. My agent is telling me it'd be about 1/2 that if I quit smoking. In 5 years I can turn that into $750,000.00 term, $250,000.00 universal, I think for the same rate if I want. Edited March 3, 2007 by Clubfoothead Quote Link to comment Share on other sites More sharing options...
whomper Posted March 3, 2007 Share Posted March 3, 2007 Do a lot of you carry policies on your wives ? We have a small one in case God forbid something happens to my wife..Basically pays the mortgage and burial.. Quote Link to comment Share on other sites More sharing options...
Piles Posted March 3, 2007 Share Posted March 3, 2007 Do a lot of you carry policies on your wives ? We have a small one in case God forbid something happens to my wife..Basically pays the mortgage and burial.. No, my wife has a 250k policy is all. I don't see a real need for more than that because my family could still live comfortably without her salary. Quote Link to comment Share on other sites More sharing options...
untateve Posted March 3, 2007 Share Posted March 3, 2007 Do a lot of you carry policies on your wives ? We have a small one in case God forbid something happens to my wife..Basically pays the mortgage and burial.. We each have 1.2 million in life insurance. If something happened to her, I would want to cut way back in my work hours as I would be the only parent. Quote Link to comment Share on other sites More sharing options...
The Holy Roller Posted March 3, 2007 Share Posted March 3, 2007 The wife just left for a week in Mexico with a group of her female yoga friends to some crap called "Yoga School". I have my doubts. So I'm thinking about getting a whole lotta insurance on her. Quote Link to comment Share on other sites More sharing options...
spain Posted March 3, 2007 Share Posted March 3, 2007 The wife just left for a week in Mexico with a group of her female yoga friends to some crap called "Yoga School". Dont smell her breath when she gets back... Quote Link to comment Share on other sites More sharing options...
spain Posted March 3, 2007 Share Posted March 3, 2007 We have ~$1M of term life insurance on my wife and me. We have 2 young children and no debts except for a mortgage. That should get it done. Quote Link to comment Share on other sites More sharing options...
Jimmy Neutron Posted March 3, 2007 Share Posted March 3, 2007 Do a lot of you carry policies on your wives ? We have a small one in case God forbid something happens to my wife..Basically pays the mortgage and burial.. Yes, but probably not enough - $250k plus some small work freebie policies. More than enough to pay off all debt and burial, plus a nanny for help with the kids. Maybe I should cover her a little more in case I have to hire a sammich maker? I'm in the process of getting another policy that will cover me for about $1.2M. A gal is coming to my office this week to draw blood. I'm a little arfaid of what my cholesterol will come back at. It was excellent the last time I bought a policy, but that was several years ago. Quote Link to comment Share on other sites More sharing options...
Clubfoothead Posted March 3, 2007 Share Posted March 3, 2007 The wife just left for a week in Mexico with a group of her female yoga friends to some crap called "Yoga School". I have my doubts. So I'm thinking about getting a whole lotta insurance on her. A friend of mine's wife starting going to women's yoga retreats out near Tyler, Texas. He left the office for greener pastures about a month after they got divorced. I never found out if she was banging the instructor or went lesbian - it was one of the two. When I think about it, maybe it was both. Good luck with that. Don't kill her though. If you split up, just make your next piece hotter (and maybe bisexual) than her next piece and make it an amicable divorce. Maybe you could end up as the only dude in a foursome some day. You have to think ahead and plan. Life in prison is less desirable than getting it on with 3 hot lesbians. Quote Link to comment Share on other sites More sharing options...
untateve Posted March 3, 2007 Share Posted March 3, 2007 You have to think ahead and plan. Life in prison is less desirable than getting it on with 3 hot lesbians. This is the exact same thing the dali lama told me in '89 while we were smoking hash. Hey club, you don't, by chance, live in tibet do you? Quote Link to comment Share on other sites More sharing options...
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